The fate of the IRA charitable rollover remains uncertain for 2012, but for 2011 people 70 1/2 years and older have a special opportunity to make a significant tax-free charitable gift.
Here's how the IRA Charitable Rollover Works:
If you are at least 70 1/2 and required to take a 2011 minimum distribution from your IRA, you can transfer up to $100,000 of your IRA assets directly to a public charity such as The Community Foundation of Greater New Britain (CFGNB)
The transferred assets will not be recognized as income, so they'll be free from federal income taxes today and from estate taxes in the future. If you have a spouse who is also subject to required minimum distributions, you can both take advantage of this tax-free giving opportunity by transferring up to $100,000 each. This truly offers a way to make a very significant and meaningful charitable contribution to help support your community.
CFGNB offers a number of options to achieve your charitable objectives through an IRA charitable rollover:
- You can establish or add to a designated fund benefiting one or more nonprofits of your choice.
- You can establish or add to a field of interest fund in support of a particular area of interest such as the arts, education or health. Consider some of our existing funds such as the First Years First Initiative (early childhood development), the Helen M. Lynch Fund (area hungry & homeless) or the Talcott Stanley Fund for the Arts.
What to Keep in Mind:
Presently, only IRA withdrawals qualify for this special charitable treatment. The withdrawals cannot come from any other type of retirement plan, nor do they qualify for any additional charitable deduction. Although expanding the charitable IRA rollover has been discussed in Congress, it currently does not apply to other charitable alternatives such as donor-advised funds, charitable gift annuities, charitable remainder trusts and private foundations.
To learn more about this and other charitable giving strategies, contact Ann Bova, Director of Development, today:
Phone: (860) 229-6018 x 302
E-mail: abova@cfgnb.org
